Commentary by Stephen Macaulay
“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” —Donald J. Trump, October 23, 2025
"Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now". —Donald J. Trump, October 25, 2025
What “egregious” act did Canada make against the United States such that the president of the United States has ended trade negotiations with the country?
Before answering that, it is important to note, using Trump-style typography:
CANADA IS THE LARGEST EXPORT MARKET FOR US GOODS. IN 2024 THERE WERE NEARLY $350 BILLION OF US GOODS SHIPPED TO CANADA.
That’s right. American companies send more products to Canada than any other country.
All of the interest in China might lead you to believe that it is the biggest market.
Actually, it is a somewhat distant third, at $143.5 billion.
Mexico is in second place ($334 billion).
(You’d think Team Trump would be nicer to our two closest neighbors.)
The horrible thing that happened was that the government of Ontario ran an anti-tariff ad that aired during the first game of the World Series (which, ironically enough, the Toronto Blue Jays, dominated, 11-4 over the Los Angeles Dodgers).
The ad cleverly used a radio address from then-President Ronald Reagan, aired on April 25, 1987.
The charge is that somehow Reagan’s anti-tariff remarks were cherry-picked from his address.
So here are 300 consecutive words from the 784 words that Reagan spoke (counting the “My fellow Americans” and “Until next week, thanks for listening, and God bless you.”):
Now, that message of free trade is one I conveyed to Canada's leaders a few weeks ago, and it was warmly received there. Indeed, throughout the world there's a growing realization that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition. Now, there are sound historical reasons for this. For those of us who lived through the Great Depression, the memory of the suffering it caused is deep and searing. And today many economic analysts and historians argue that high tariff legislation passed back in that period called the Smoot-Hawley tariff greatly deepened the depression and prevented economic recovery.
You see, at first, when someone says, ``Let's impose tariffs on foreign imports,'' it looks like they're doing the patriotic thing by protecting American products and jobs. And sometimes for a short while it works -- but only for a short time. What eventually occurs is: First, homegrown industries start relying on government protection in the form of high tariffs. They stop competing and stop making the innovative management and technological changes they need to succeed in world markets. And then, while all this is going on, something even worse occurs. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So, soon, because of the prices made artificially high by tariffs that subsidize inefficiency and poor management, people stop buying. Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.
The memory of all this occurring back in the thirties made me determined when I came to Washington to spare the American people the protectionist legislation that destroys prosperity.
“Spare the American people the protectionist legislation that destroys prosperity.”
Perhaps the only concern that Trump might have is that there is no legislation — he’s just applying tariffs as he sees fit.
What Trump wants us to believe is that a single TV ad is a threat to our national and economic security.
Is there a single Republican — Reagan-style or otherwise — who actually believes this is the case?
There was no misconstruing Reagan’s position on tariffs, a position that actual conservatives hold, as well:
Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.
MAGA!